Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

ACE Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

Free Cash Flow = Operating Cash Flow - Capital Expenditures

Using above formula to calculate Free Cash Flow for Ascension Capital Limited (ACE), the free cash flow value is -90005.

All amounts in NZD

Operating Cash
-90k
Capital Expenditure
-
Free Cash Flow
-90005

Ascension Capital Limited has a negative free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

ACE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ascension Capital Limited (NZX:ACE).

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income-171.17k-150.53k14.93k-193k
Change To Netincome360-331-331-331
Change To Account Receivables471-7424.37k4.37k
Change To Liabilities26529.26k-69.4k122k
Change To Operating Activities80k10k10k10k
Total Cash From Operating Activities-90k-112.14k-50.1k-71k
Net Borrowings45k45k45k40k
Total Cash From Financing Activities45k145.54k145.54k40k
Change In Cash-45.01k33.41k4.66k-31k